Effective Date:  01/08/2003

Internal Audit Polices and Procedures

Misuse Investigations
Working Paper Format for Misuse Investigations

UNC Internal Audit
Potential Misuse - (name of area)
As of 6/22/95
Background Summary

On 6/23/95, we received a report identifying possible misuse of State funds in (name of area).  The allegations were raised as part of a civil suit filed in a local court.  A summary of specific issues contained in the allegations follows.  A copy of the report filed with the SBI and information provided to the University Counsel’s Office are filed on w/p.

  1.   The suit papers make the claim that the Defendant & the Plaintiff’s spouse - both employees of (department) - traveled together on several occasions.   Specific trips & dates cited in the filing are:
  1.   The Plaintiff alleged that the Defendant scheduled business events to allow him to spend time with the Plaintiff’s wife at the University & other locations.
There were other allegations that relate to issues that are external to the University’s fiscal and opera-tional activities and will not be a part of our investigation.

Because the combination of the two claims listed above suggest a possibility that travel funds may have been misused, Internal Audit will initiate an investigation of the issues identified in the misuse report.  Refer to w/p B-1 for a summary of procedures planned to investigate these allegations.

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UNC Internal Audit
Potential Misuse - (name of area)
As of 9/27/96
Audit Program

We plan the following steps to investigate the allegations regarding the (department).  References to the w/p’s showing the results of each step are provided:

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                                                                                                        November 6, 1996

Dr. James Moeser, Chancellor

103 South Building
Campus Box 9100

Dear Dr. Moeser:

We have completed a review in the (name of area). We initiated our review in response to an anonymous letter alleging misuse of funds and work time in that Department. Our review included an examination of financial reports and documents and interviews with management of the Department. We referred allegations involving misuse of time to the Office of Human Resources for resolution.

Our review showed that employees of the Department have sometimes used a University Federal Express account to ship personal items. The practice was infrequent and the individual had reimbursed the De-partment for the cost of the shipments. We also noted that long-distance calls with no apparent business purpose (e.g. calls to a veterinarian, dentist, cycling shop, local medical center, etc.) had been charged to Department phones; none of the calls had been reimbursed to the University. Neither practice is in keep-ing with policy regarding personal use of University facilities and resources. We discussed these items with Department management; appropriate corrective action is underway.

We will follow-up on this issue in any future reviews in the (name of area) and will advise you if any additional action by our office is necessary. If you have any questions about our review, please call me at 962-5524.


Phyllis C. Petree

Director of Internal Audit

c:         general counsel
            vice chancellor (Vice Chancellor for Finance & Administration always receives copy)
            department head
            dean or associate vice chancellor (Associate Vice Chancellor for Finance always receives copy)
            Chief of UNC Police

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